Analysis: Tariff Remarks Trigger $850 Million in Long Liquidations, Bitcoin's $90,000 Level Becomes Key Defense Line

According to the latest market analysis from Wintermute, driven by sustained inflows into ETFs and marginally cooling inflation data, Bitcoin recently successfully broke through the key resistance level of $95,000 and even climbed to around $98,000, setting a new phase high. However, market sentiment shifted abruptly on Monday. Trump's announcement of imposing additional tariffs on certain European countries triggered collective pressure on risk assets, leading to a rapid pullback in Bitcoin.

Data shows this news triggered approximately $850 million in passive liquidations of long positions, with the BTC price quickly retreating to the $92,000 level within a short period. Wintermute believes the previous rally was primarily driven by three main factors: First, a significant return of funds to spot ETFs, with a single-day net inflow reaching $760 million last Tuesday and a cumulative weekly inflow of approximately $1.4 billion; Second, favorable inflation data, with the US core CPI year-on-year increase dropping to 2.6%, the lowest since March 2021; Third, the gradual realization of the catch-up trade logic for Bitcoin relative to hard assets like gold.

Despite the large-scale liquidations accompanying the pullback, the report points out that market leverage was cleared out within a short timeframe, without triggering chain liquidations or a liquidity crisis. The overall event is closer to a healthy technical adjustment rather than a trend reversal.

Looking ahead to this week, investors will focus on the Davos World Economic Forum, the EU emergency summit, and the core PCE inflation data to be released on Friday. Wintermute believes that as long as the Bitcoin price can firmly hold above the $90,000 level and ETF fund flows remain positive, the upward structure remains sustainable. If this support level is lost, a return to the range-bound volatility seen since last November cannot be ruled out.

Overall, the report considers the current market buying foundation to remain solid. Short-term uncertainty mainly stems from whether tariff-related remarks will be further implemented. Based on current pricing, the market tends to view this more as a phase of "political noise" rather than a systemic risk.